RBA Surprises by Holding Rates at 3.85%
The Reserve Bank has held the cash rate steady at 3.85%, surprising markets that widely expected another 25-basis-point cut. A tight 6–3 board vote reflects growing caution, with the RBA citing a strong labour market and global uncertainty as reasons to pause. Despite inflation tracking within target, the board wants more data before making further moves.
Next Move Likely in August
Economists now point to August for the next potential cut, once fresh inflation and labour data are released. While this decision was unexpected, it hasn’t changed expectations for more easing later this year. Many in the lending industry still anticipate one or two rate reductions before year’s end.
Time to Be Mortgage-Ready
For borrowers, now is the time to review your position. With the rate outlook still favourable, mortgage brokers can help you get ahead of the next move. Whether buying or refinancing, preparation will be key in a market where timing and tailored advice matter more than ever.